Seven local authority areas in the UK have seen an annual fall in house prices.
Houses across the UK are now selling at an average price of £259,700, 1% less than in October 2022.
UK-wide annual house price growth has dropped to 4.1%, but a few locations are already seeing annual price falls: expensive London boroughs and the east coast of Scotland.
We’ll reveal the locations in the UK where house prices are falling and rising, plus the cheapest and most expensive places to buy a home on average right now.
Having said that, we know averages aren’t going to cut it when it comes to your home.
The UK locations where house prices are falling
Four parts of London have registered a fall in average house prices since this time last year.
Homes in Westminster are selling for £12,170 less than a year ago on average (-1.2%), while properties in Kensington and Chelsea have lost an average of £6,220 (-0.5%).
House prices have fallen slightly in Hammersmith and Fulham (-0.1%) and Tower Hamlets (-0.1%), taking £550 and £350 off the average sale price respectively.
Meanwhile, Islington, Camden and Wandsworth have seen house prices rise less than 1% in the last year.
London is feeling the impact of increased mortgage rates due to its higher house prices, which is impacting buyer demand and causing price growth to stagnate or fall into reverse.
The only other places in the country where house prices are already falling year-on-year are on the east coast of Scotland: Aberdeen (-1.1%), Aberdeenshire (-0.2%) and Moray (-0.2%).
A lack of investment in the North Sea’s oil industry in recent years is having a knock-on effect on local employment and reducing demand for property on the Scottish east coast.
Here are the sevens places where house prices are falling, along with the locations seeing the lowest annual house price growth.
| Local authority area | Average house price | Annual price change (%) | Annual price change (£) |
|---|---|---|---|
| City of Westminster | £962,600 | -1.2% | -£12,170 |
| Aberdeen | £140,000 | -1.1% | -£1,590 |
| Kensington and Chelsea | £1,189,400 | -0.5% | -£6,220 |
| Moray | £168,700 | -0.3% | -£560 |
| Aberdeenshire | £186,600 | -0.2% | -£350 |
| Hammersmith and Fulham | £731,100 | -0.1% | -£550 |
| Tower Hamlets | £482,100 | -0.1% | -£350 |
| Islington | £628,000 | 0.4% | £2,260 |
| Camden | £750,900 | 0.6% | £4,560 |
| Wandsworth | £655,500 | 0.7% | £4,660 |
Zoopla House Price Index, March 2023
The UK locations where house prices are rising the most
Areas in the North West and Wales are recording the strongest house price growth in the UK, with homeowners gaining more than 6% in sale prices year-on-year.
House prices have risen the most in four towns near Manchester – Oldham (+7.4%), Rochdale (+7.3%), Wigan (+7.1%) and Calderdale (+6.9%) – as buyers seek value for money and connections to large employment centres.
Homeowners in these areas can expect to see at least £10,000 added to their home’s sale price since February 2022.
Areas in South and West Wales have also enjoyed strong house price growth in the last year, with the biggest gains seen in Carmarthenshire (+6.8%), Neath Port Talbot (+6.7%) and Bridgend (+6.6%).
The Vale of Glamorgan has seen the biggest monetary gains with homeowners adding £17,360 (+6.3%) to their home’s sale price, while those in Pembrokeshire have seen a £13,920 rise (+6.5%) since February 2022.
| Local authority area | Average house price | Annual price change (%) | Annual price change (£) |
|---|---|---|---|
| Oldham | £171,900 | 7.4% | £11,820 |
| Rochdale | £163,700 | 7.3% | £11,070 |
| Wigan | £163,900 | 7.1% | £10,860 |
| Calderdale | £169,200 | 6.9% | £10,900 |
| Carmarthenshire | £199,000 | 6.8% | £12,650 |
| Neath Port Talbot | £151,000 | 6.7% | £9,480 |
| Bridgend | £192,100 | 6.6% | £11,870 |
| Pembrokeshire | £228,300 | 6.5% | £13,920 |
| Caerphilly | £174,100 | 6.4% | £10,410 |
| Vale of Glamorgan | £293,300 | 6.3% | £17,360 |
House Price Index, March 2023
The UK locations with the cheapest house prices
The cheapest areas to buy a home in the UK right now are all located in Scotland and the North of England.
The cheapest houses for sale in the UK are in rural areas to the east of Glasgow – Inverclyde, East Ayrshire and West Dunbartonshire – where house prices average less than £110,000.
In the North East, you can find cheap houses for less than £120,000 in Hartlepool, Hull, Middlesbrough and Sunderland.
And in the North West, the cheapest properties for sale are in Burnley, where the average home costs £116,600.
The prominence of Scottish regions is down to a greater balance between property and wage growth than the rest of the UK.
“Scotland dominates the most affordable areas list, with modest pricing and stronger relative earnings making a home move more accessible for many,” says Izabella Lubowiecka, Researcher at Zoopla.
“For home movers on average salaries, mortgages are more affordable in these lower-value locations, especially if they have built up some equity in their current property.”
| Local authority area | Average house price | Annual price change (%) | Annual price change (£) |
|---|---|---|---|
| Inverclyde | £101,200 | 3.3% | £3,190 |
| East Ayrshire | £102,600 | 3.3% | £3,300 |
| West Dunbartonshire | £108,700 | 2.7% | £2,810 |
| Hartlepool | £110,500 | 3.7% | £3,930 |
| North Ayrshire | £111,200 | 3.0% | £3,220 |
| Hull | £112,000 | 2.5% | £2,750 |
| Middlesbrough | £113,900 | 3.7% | £4,110 |
| Burnley | £116,600 | 3.3% | £3,720 |
| North Lanarkshire | £117,600 | 3.9% | £4,380 |
| Sunderland | £117,700 | 2.4% | £2,810 |
House Price Index, March 2023
Where are the most expensive house prices in the UK?
When it comes to the most expensive places to buy a home, it’s all about London and the South East.
Kensington and Chelsea is the only place where the average house price pips the £1 million mark, but houses are selling for £6,220 less than a year ago on average.
The City of Westminster is a clear second place at £962,600 despite a £12,170 annual drop in sold prices.
House prices in Richmond, Camden, Hammersmith and Fulham, and Elmbridge all sit above £700,000 but price growth is low or negative.
Stretched affordability in London is limiting the scope for price growth and we’re expecting price falls of around 5% to 8% by the end of 2023. This will improve affordability and support a future rebound in inner London markets.
| Local authority area | Average house price | Annual price change (%) | Annual price change (£) |
|---|---|---|---|
| Kensington and Chelsea | £1,189,400 | -0.5% | -£6,220 |
| City of Westminster | £962,600 | -1.2% | -£12,170 |
| Richmond upon Thames | £764,600 | 1.2% | £9,430 |
| Camden | £750,900 | 0.6% | £4,560 |
| Hammersmith and Fulham | £731,100 | -0.1% | -£550 |
| Elmbridge | £720,200 | 1.8% | £12,710 |
| South Buckinghamshire | £680,100 | 2.4% | £15,620 |
| Wandsworth | £655,500 | 0.7% | £4,660 |
| Chiltern | £654,300 | 2.3% | £14,640 |
| Islington | £628,000 | 0.4% | £2,260 |
House Price Index, March 2023
Key takeaways
- The UK’s average house price is now £259,700 as house prices fall 1% since October and annual price growth drops to 4.1%
- There are seven local authority areas in the country where house prices are already falling year-on-year – four London boroughs and three areas on the east coast of Scotland
- All other areas in the UK continue to see low annual house price growth, with towns on the outskirts of Manchester and areas in Wales faring the best